Can I enjoy tax relief as a self-employed person when I make voluntary top-ups?
Self-employed persons (SEPs) can enjoy tax relief on their mandatory and voluntary CPF contributions based on their annual net trade income (NTI). However, there is no tax relief for your mandatory or voluntary CPF contributions if your assessed NTI for the year of assessment is zero or negative.
You can enjoy tax relief on your mandatory and voluntary contributions based on whichever is lower:
- 37% of assessable income; or
- CPF Annual Limit of $37,740; or
- Actual amount contributed by you
Please note that there will be a personal income tax relief cap of $80,000 which will apply from Year of Assessment 2018. This cap applies to the total amount of all tax reliefs claimed, including any relief on voluntary contributions made on or after 1 January 2017.
As accepted voluntary CPF top-ups cannot be refunded, you should evaluate whether you would benefit from tax relief on your voluntary CPF top-ups and make an informed decision. Please visit the Inland Revenue Authority of Singapore (IRAS) website for more information.